Rare Batch Of Brazilian Coffee Certified By ICE Exchange

From: nasdaq.com

LONDON, Sept 7 (Reuters) – A rare batch of Brazilian arabica coffee has been certified as deliverable by the ICE exchange, reinforcing bets that rising stocks from the world’s top producer will soon start to alleviate supply worries and weigh on futures prices.

Arabica stocks KC-TOT-TOT in ICE warehouses are currently at 20-year lows and an influx of Brazilian beans could provide a significant boost, though it remains unclear whether the coffee can pass the exchange’s strict quality controls in significant quantities.

ICE arabica futures are backed by “washed” coffee beans, while Brazil produces mostly unwashed grades, although this season’s record crop is of high quality and expected to contain a fair amount of semi-washed grades.

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